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tv   Closing Bell  CNBC  October 23, 2014 3:00pm-5:01pm EDT

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stocks today, welcome to the "closing bell," a i'll kelly evans at the new york stock exchange, bill, moments ago, load like another 300-point ral lip to wall street. >> i'm bill griffeth th. that 300-point gain. yesterday, highlighting the decline in oil, tragedy in canada, today, looking at earnings from the likes of caterpillar and 3 m, both which hit it out of the park and both whom very much higher today and contributing to these gapes we are seeing right now. >> absolutely contributing to the dow. all this in spite of the fact that yesterday, at&t missed earnings after bell. and for a time, on the "wall street journal" front page today, there's talk about what's ailing the blue chips. but again, a couple of big important ones today, reassuring investors a bit and note not just doubt benefitting, all the major indexes up to the tune of 1.5%. the russell 2000, highlighting that as well. look at that. up 1.8%. that was the hardest hit of all the major averages at the -- i
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don't want to call it a bottom yet yet. the lows we achieved. >> 13%, the russell. still not made a new closing high since i want to say march or july, july would have been the interday high. that's the one to watch f it can come back, more of a sigh of relief, the big major averages following suit. >> talk more about it, our "closing bell" exchange for this thursday, joining us this hour, heather hughes from sin america funds, joe quinlan from u.s. trust with us here at the big board today, dennis garthman from the garthman letters out there somewhere, lex luther from o'neil securities and kenny polcari from o'neill securities, yes, he shaved his head yesterday. >> oh, wow. >> for cancer research. >> got it, kenny. >> have more on that coming up in a little bit. and our own rick santelli, still has his full head of hair joining us from chicago.
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despite the bond market last week. >> >> hasn't been pulling it out the last few days. >> dennis garthman, start with us, every day, we can come up with a reason why the market's either up sharply as it is today or down sharply as it was yesterday. but in the aggregate is there something else going on? why the volatility rue now, do you think? >> bill, i wish that i knew, as i told people, only at this for 45 years, i'm relatively new to it, but this is the sort of volatility that i have never seen. i live my life in the pits in chicago. i hadn't seen anything like. this i traded all my life. >> seriously, dennis? >> well, not all my life, just from the time i was in my mid-20 united states. >> talking about equity test or commodities -- the if i canned income space -- >> kelly, i'm talking about commodities and equities across the board. the bond market, aggregates in movements i have never seen before. watching the stock market move 3% down one day, down 2%, up 3%, up 2%, watching bonds go and yesterday, you had this enormous
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movement in the bond market and the back end and in the front end still very strong, moving almost half a percent, when you're watching crude oil move 3 and 4% down and 3 and 4% up, these are unprecedented. maybe it takes -- maybe it takes a kid to be able to trade them, butera to make sense what's going on. per spperspective on what's happeni. >> they need a straight jacket to tie around the market. cop fusion around tapering, europe and global growth. the end of the day the u.s. economy is leading the global economy forward. europe is bottoming out. decent number out of china, 7% growth. good greet out of indonesia, india, at the end of the day, we are still buying, but high quality, the dividend-paying blue chip multinationals. joe, you think that the fears about global growth slowing down, you think that's
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overblown, don't you? >> i do think it's overblown, bill, the u.s. is out in front. europe is gonna -- they are gonna muddle along, woke.up to the fact that the growth is slow, see more policy action. we are seeing kind of it calm down with the russian situation. the emerging markets in and of themselves, starting to grow. beyond the brazilian election, another big emerging markets coming on and the markets peering into 2015 and global growth backdrop is improving. >> dennis, just to go back to this for one second, are you -- i remember quite well a couple of weeks ago, you came on, said i don't like the way oil's trading, don't like the way stocks are trading, i think we are going lower and that's played out. has your view changed now that we've retraced? >> i trade only for my own account, kelly. i will tell that you two weeks ago, i went to newt travel i own some propane stocks. i own a little bit of apple, but hedged everything with ter derivatives and i remain neutral. not bullish, not bearish, i'm neutral. crude oil, i think, has a long way to gone at downside, which
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could be trouble -- which could be problematic for the stock market because of the correlation between the two, but absolutely neutral on store, i own a few things, i have them hedged. although i'm dismayed by watching the market crumble and then fly, i'm still gonna stay where i'm a i may be wrong by staying on the sidelines or being neutral but i will let others make money during this period of time. it's beyond my -- >> we keep talking about crude oil, could that increase the consumer could that increase to spending as far as dollars in the consumer's mockets over the holiday season? some allude to supply or fracking for the drop in crude oil but also could be that global slow down, which was a concern last week doesn't seem to be there this week as we are trading back on fundamentals yet again. >> kenny, we should mention, the market still seems to be extremely sensitive to any rumor of ebola. and as our art cashin just
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reiterating, off 80 points from the highs perhaps because of that should we just be moving through these, dismissing them as overreactions or is there still potentially a bigger, you know, downside concern out there, that is thing spreads? >> you know, i think what the market is telling, it's clearly showing ankle irkts right? i think the move last week just fed on, way overdone. and so this volatility, back and forth that you see in the market is as it's kind of snapping back and trying to find its level. i think right around 1950 is where it's gonna settle. i don't think people should be surprised if they see us back off a little bit more because we had that very sharp v-type of a trade here over the last week. and so the mark let's some damage. so it needs to regroup. i don't think this is of a concern at all. i think the ebola thing, you know, is -- is gonna just cause anxiety, except i don't think that's going to be the reason that the mark it's gonna sell off again. >> rick, as we have highlighted, the volatility really exist in the equity market. you guys in the bond pit haven't seen that much, have seen
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volatility on certain days but today is one of those ex-arms, equities are sharply lower and bonds are not as much in movement category. if you pay attention to what central banks are doing, you have to, of course, acknowledge their affect on the equity. that explains it i personally at not at all surprised by the volatility and i think it's going to have a return and bigger and bigger portions the next several year, the very rough road of normalization somewhat occurs. you know, today, the dax had its first close since the ninth of october above 9,000. everything is moving somewhat similar and you know, earlier referenced that maybe i was pulling out my hair based on the way we have sold off since last wednesday's rally, pushed yields down to 186. no i think i'm putting more on. to me, that was the absolute easier sale in all the 35 years i've been following bonds. i think a significant
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probability, a medium term bottom. could turn into the bottom. can he want can't make this assertion yet. and worth mentioning, central banking activity, whether you agree with it or disagree with it, build a foundation of volatility, no two ways about it. >> right. right. >> central banks believed everything was as good as everybody on our panel says every day, they would definitely end some of this policy and its nee that ending really going to have the long goodbye and hello to volatility. >> this session actually what david laid out several weeks ago, rick, you echoed him on that i want to go back to the point you made last week. last week, you were saying and many have been saying rightly all along, listening to what the bond market is saying, it is telling us something and now saying it was an aberrations. >> accident say it was an aberration. i said it was a top of the market. every market, even if there are adults in the room, has to have a high and low. we have a high and low in every market. that extreme a capitulation on
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those carrying short positions far too longful i still say the message of the bond market is intact, but just from a slightly different level. >> heather, are you teegd positions? what are you doing there in sun america? >> the upside, days like now, today, but i don't think we are out of the woods yet, bill. just because we have had the fast few sessions, including today, move toward the upside and we have what appears to may have been a very short lived official correction in the s & p i don't think that necessarily means that we are gonna bounce back and reach all-time highs yet again. >> dennis gartman, the most important thing for this market no to you figure out how to can trade higher, even as oil trades lower? >> very important, kelly, court lation has been almost 1-1. i have never understeered why that correlation existed. the past several years, as goes crude, so has gone the stock market, at least the past several months, you have crude oil make a new low again that's going to be problematic for the
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stock market. i own a few things, have them hedged, stein the sidelines and watchedville stocks go side ways for a week or two and stop this sort of volatility, look what we have done, while we have been at show, fallen 70 dow points that's extraordinary. let the market sideways for a while and entice me to come back n until then, i think i will watch from the sidelines and go hit some golf balls. these moves, up 250, down 150, up 200 continues to create the volatility, shows the anxiety, right? >> i think you will continue to have it >> kenny, let you go, my wife sought picture of you last night after you shaved your head, she really like it and i'm a little concerned now, she is going to be asking me to do the same thing. tell us about -- you guys raised a lot of money last night for charity. listen this charity raised over $400,000 last night for pediatric cancer and this organization, started by a mother and father who seven years ago got the diagnosis
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their 13-month-old son had a stage iv neuroblastoma with no opportunity four this child to get better and the parents absolutely said it, and no money for funding and no research and the government doesn't support it because pediatric cancersment apparently respect worth it, according to word. parents started this organization and the last five years, raised over $1 million for clinical trials and research and today, their son is now 7 years olds, in remission, and perfectly healthy. >> well done, kenny. >> shave for a cure -- shave 4 a if you want to make those contributions in kenny's name as well. and what do you think? you kind of like it you gonna keep it? >> you know, listen, i have done this before. i do kind of like it my head has got a good shape to it, it looks all right. >> yeah, but i would have killed for the hair you gave up last night. >> coming back. it's coming back. >> lucky you. thank you all for joining us. appreciate it very much. >> we have about 50 minutes to
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go now the dow up 225 points, supported by some strong earnings this morning from a number of blue chips. we are going to get much more after the close, including names in the nasdaq to watch out for, amazon, microsoft, just to name a few. >> volatility really does continue this hour. also, dunkin' donuts getting dunked after sounding an alert on achieving its full-year sales growth targets. we have duncan brand ceo back with us to explain what's going on. it's a first on cnbc interview come in a moment here. how much could investigations into shooting rampages like what happened yesterday in canada be hampered by new smartphones that prevent anyone, including police authorities, from accessing information on the devices? a law enforcement expert is here to weigh in when we come right back. e
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canada on high alert after yesterday's shootings in the capital of ottawa. sarah daloff joins us with the latest development there is. hi, sarah. >> reporter: hi, bill and kelly. it has been an emotional day here, beginning with the prime minister and members of parliament visiting the national war memorial to lay a wreath and pay tribute to the fallen soldier. the prime minister earlier pledged that the country would not be intimidated by these attacks and today, we saw a shaken public who tried to make good on that promise. returning to life as normal as much as possible here under a heavy police presence. now, parliament was back in session today, nearly 24 hours to the home from went attacks began and sergeant at arms kevin vickers was greeted with a standing ovation. he is -- he is being recognized for his efforts to stop the gunman t when the shooting began, he ran to get a gun, shot and killed that gunman outside the caucus room.
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he kept a very stoic face as he was given that standing ovation today, although at one point, swallowed hard, appeared to be keeping his emotion from flowing out right then. now, we are also learning pore about the suspected gunman, who we are told was born michael joseph hall, but changed his name after he converted to islam. he was considered a high-risk traveler by authorities, who recently took away his passport, worried that he was gonna travel overseas to commit crimes. now, his parents released a statement today, apoll xrizing to the victim's family, that fallen soldiers family, saying they have no explanation for his actions and saying, his mother saying "i don't understand and part of me wants to hate him at this time." we are expecting a press conference momentarily with more information about the shooter and kevin vick, the man hailed as hero and have that for you coming up very soon. back to you.
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>> cell phone measures prevented investigators from investigate the phone. fbi director voiced concerns over no-access encryption software on new phones, including the i phone 6. >> have we become so mistrustful of government and law enforce n particular we are willing to let bad guys walk away, following leave victims in search of justice? >> so, how would this investigation hamp felder the shooter in canada had an encrypted phone like, for example, the iphone 6 or even the company who makes it can get access to it to help law enforcement officials? what a thorny issue this is. companies have been under pressure to increase and improve security measures, for obvious reasons, because of all the data breaches. now that they have, law enforcement is crying foulsome there a middle ground to be had somewhere, do you think?
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>> i hope so. i think this is the latest chapter in the ongoing struggle between law enforcement and the communications industry. and by the way, most of the time, that struggle is healthy for our democracy. however in this case, i don't think it is. i think companies like apple, android and maybe others are touting privacy, but i think it's more about profit. this can only obstruct investigations, terrorist investigations, criminal investigations, where time is of the he is tense sense f this was a money laundering case or insider trading case, time is really not a factor. >> right. >> in something like kidnappings, terrorism, et cetera, minutes count and lives are lost because of time delay. >> what is going to happen, ed with this technology. is it going to be ruled up constitutional? >> i hope not. director comey a good man, fighting this fight, the law he is talking about from the mid'90s, enabled law enforce tomorrow get into the various communication devices in a much easier way. that law now needs to be updated
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to include smartphones. that's his point. there's nothing illegal being done here. it's not about spying or fishing expeditions this is about actual ongoing investigations. >> ed, i'm sorry to interrupt you, we will have to leave it there, we do have some breaking news on another topic. thank you, edmund hartnett. we turn to our dom mick chu with news on the ebola outbreak. what can you tell us? >> following a story that's been kind of floating around on twitter and other news organizations about a potential ebola case in new york city. we now have a statement from bellevue hospital and the new york city department of -- just the new york city government saying that today, ems has tack units transferred to bellevue hospital a patient who presented a fever and gastrointest nal symptoms much the parent is a health care worker who has returned to the united states within the past 21 days from one of the three countries currently facing the outbreak of the virus. so, again, this patient is being tested for symptoms possibly of
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ebola. again, the bell view, the hospital, saying that the hospital itself and new york state department of health are ensuring that all staff caring for the patient will do so while following the utmost safety guidelines. this he also follow it by saying chances of the average new yorker contracting ebola are extremely slim. ebola is spread directly by touching with bodily fluids. you cannot be infected by simply being near someone who has ebola. now, women say this, to put it in a little bit of context, we had a market with the dow up around 300-some points. those market gains did ease a bit with these headlines crossing this afternoon. now, some traders say that it was partially because of this story and the headlines with ebola, but of course, it's a confluence of different things. we will continue to follow developments out of this story, but for right now, what we do know is that there is a health care worker at bellevue hospital in new york city being tested for symptoms that may be ebola and again, bill kelly will bring you any more details as they
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become available on our news desk. >> we are joined by art cashin, and bob pisani why a 70 to 80 point drop in the dow? >> may stabilize, since it turns out it is only testing here. new york city is a kind of town where health concerns can lead lead to lifestyle change, people might not want to take the subway anymore. might begin to affect how things are going. so now that we have another large city that has it, nervousness dictated that you pull back, market was eventually vulnerable at the time, because the s and p was right up against the resistance at 1960, 1966, which is where the 50 day and 100 day moving averages converge. we ran into the resistance, along comes a rumor to kind of spook people, maybe i don't want
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all that much risk on the table. we are down 70 points. >> paul allen just announced that he is donating $100 million to the cause against ebola, to the cdc, to try and get something going here. i mean, the president, of course, has been out trying to get other countries to pony up on this battle as well. now, paul allen, co-founder of microsoft, doing the same thing, bob pisani. >> what impresses me about what happened here, only 70 or 80-point move, up 300 points. if this story happened two weeks ago, come on, down a lot more. i think we are all -- let's not say getting used to this, getting used to is not the right word. i think people are acting a little more levelheaded right now. >> a context now we are working within, right? >> exactly. >> not as wildly con tame joyce as we believe. the real problem that happened in dallas was two professional health care workers contracted it and people said, what is a
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normal human being, these people using suits and whatever, contract it had, found the family with whom the victim was living did not contract it we knew it wasn't quite as contain joyce as the first few. >> mention this comes after we spoke with the creator of a motif, his site has, around the ebola trade, if you will, said we are going to donate the profits to doctors without borders, but the idea being, as we have seep in the market, we should take a look at the airlines here, see if we are getting the same trade last week, even if the broader market is holding up reasonably well if that panning out. >> i think if you put up any of the air lines today, put up ual, very good earnings reports, dramatic move up here, see if you can get an interday up ual, i think you will find, weak most of the day but ual held up throughout the day. american held up well. >> what day american was having before this. they talked -- their outlook,
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shares up 5-plus percent. >> earnings up 60%, one of the things lower, fuel costs will do for you as well as more constrained capacities. so put up, let's take a look here, i haven't had a chance to see american or united's intraday chart and we get that. >> remarkable, southwest pulled that up, jetblue, let people know, down. >> jetblue has been down all day though. in fairness to them. united, still up fractionally. >> we call this a knee jerk reaction is. there a rational explanation for a selloff like this? i over then joked years ago, when -- that in chicago, traders would automatically sell wheat or beeps or something if it starred raining just in chicago, not necessarily the fields were it was growing is this kind of a knee jerk reaction here or a rational explanation? >> i think it is pretty much a knee jerk reaction in the sense that i don't want enhanced risk when there's new questions around about what's going to
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happen. so i think what you saw were bids were can seemed sellers came in, kind of sold it into a vacuum and we went down and now, everybody is rethinking it it's only testing. and as bob said, it's only 70 points. could have been far, far worse two weeks ago. >> does it tell you anything about momentum more broadly on these indexes as we head into the close her today as well? >> i think it is reduced, very early look at the closes that we would have, almost $1 billion to buy, the cut down to 400 million, perhaps in reaction to the news also that people don't want to increase their exposure with these question marks around. >> i wounder what the ten-year is doing as well. we have highlight,000 a lot of this volatility has been in the equity markets, but not so much in the fixed income or some of the other markets as well. i don't have my access to the ten year but it will be up in just a second here, so it's -- yeah, done nothing as well. up a few basis points, not a lot of trading there. so i think we are seeing a more
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new witnessed response to this story than we would have otherwise. >> not a full panicking flight to safety. not at all. >> all right. very good. gonna move on here. what are you expecting as we head toward the close here. we got more earnings coming, right? >> the numbers have about terrific. it's hard to -- you couldn't have gotten a better number from 3 m today. caterpillar's numbers were fantastic. they had tremendous sales into the energy sector overall. and i think today, as of the close, 40% of the s and p is reporting, heading toward another 9% growth in the s & p 7500 earnings, just as we had last quarter, those numbers still beating, surprised the european commentary hasn't about more dour. it's not. all right. let you get back to work. thank you. >> thank you. >> see you guys later on an important story developing here for the last hour. >> speaking of earnings, shares of duncan brands moving lower after posting weaker than expected quarterly revenue and warping it may not reach yearly sales targets. >> important duncan earnings today and overall state of the
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consumer, bring in their ceo, nigel travis. i want to start with this story, how concerned, as a mass retailer, that -- as duncan brands is about the ebola story? you feel a chill affect on your sales at some point? >> i think the consumer is concerned about many stories out there, bill. i think, you know, you got isis. you have got ukraine. but i think there is an overwhelming concern about everything that's going on in the world. we heard this morning, in fact, on your channel, about possible triple digit recession in europe. so a lot weighing on the consumer. and i don't think the consumer's gone over yet. they very cautious. i read the other day that if you take prerecession to now, most consumers' net worth suspect -- isn't up.
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i think it will pick up for christmas. some of your commentators said, they will get beyond the ebola and other crisis and hopefully, everyone will have a positive holiday season. >> so you're saying you're not concerned about ebola per se, as a chilling -- having a chilling impact on your sales? >> no, i'm not specifically concerned about that, bill. i'm concerned about the affect on the consumer. and i just want to go back to our report. we actually had a very good quarter. which had great operating and income growth? we had 19% earnings per share growth? great cash flow. we really, i think, drove franchisee profitability in a tough environment. we grew 120 stores in the u.s., which was a record. and the key thing to us is franchise profitability. we focused on that. and sure, i like to see our comps a little bit higher, but i think we balanced that out very nicely with what the franchisees are doing. >> nigel, just anecdotely,
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mcdonald's had free coffee, what turned into basically a ten-day period. and that drew some of us away from our dunkin' routine during that period. so, how much of an impact did you see? how competitive is it in the breakfast space, mcdonald's feels as it faces declining traffic and ticket issue? has something changed about breakfast generally? why suddenly is there so much competition and what happens if they or others decide to start doing these promotions again? >> qsr has been flat for some tile, particularly this year, slightly unexpectedly. if you look at it, lunch is down, dinner is down, breakfast is up. so everyone's going into breakfast. kelly, i'm really disappointed to hear that you were attracted by someone else's promotion. i mean, i find it hard to believe. listen, $1.06 for a biscuit, free coffee with any breakfast
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purchase. amaze they had did it for over a week. >> have to talk to your bosses at cnbc or make con trib fwugts kelly evans' fund. >> a clever pro-motion on their part but speaks somewhat to the desperation mcdonald's faces now, there seems to be brand fatigue for a lot of people out there for the big guys like a mcdonald's. do you fear that that has a possibility for a dunkin' brands as well at some point? >> not at all, because our franchise sis are growing transactions. we have grown transactions all year. we are growing across the country. we recently had an investor day where we increased the number of stores we could have in the u.s. from 15,000 to 17,000. our franchisees are seeing great profitability. that's why they grow. and tough remember, our direct customers are our franchisecies, we feel investigation sided, but i have to do something to get kelly back into the fold.
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>> well, i noticed you have a dark roast there. and just before we let you go, how much of that dark roast launch has to do with -- there you go, trying to use new product offerings? i can't remember the last time i saw something like that. is that a response to trying to get people back and newly interested? >> well, we are launching a series of new platforms. we got state coming next moment. dark roast launched national coffee day on the 29th. what we found, 'cause we could actually look at the customer data with our perks program is of the people who tried it on national coffee day, 30%, kelly, came back to have a return visit. so dark roast is off to a great start. and we got some great platforms. and even though i'm very excited about the progress we have in the fourth quarter, i temper that with the fact that the consumer, as we discussed, is in a little bit of a difficult place. we are gone in nah try and get our comps as high as possible, but i want everyone to know, my
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biggest concern is franchisecy profitability and we are doing a great job. >> all right. you got the word out to your fran chasers there. that's -- you -- job one, right there. nigel, always good to see you. thanks for joining us. >> thanks, bill. thanks, kelly. wvlg he do have about half an thundershower go here, as people try to figure out, bill, just how healthy is the u.s. consumer? how healthy is the global economy? what does it mean? big deeps from the likes of caterpillar and 3 m. again, a situation where revenue suspect growing much. employee headcount is down and it goes back to the point that nigel and others are struggling with as a result. very spotty in that regard. american electric power slipping on lower-than-expected revenue in its report but that, stock has surged this year. aep ceo will speak with us exclusively about the earnings, the affect of the explosive growth in shale production, regulations that would try to phase out their coal production, which 60% of their power generation.
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all that coming up with him in just a moment. later, the ceo of advertising giant, and the head of online food order and delivery company, grub hub, here to talk earnings, talk to them about the economy and a whole lot more. don't go anywhere. straight ahead. e financial noise financial noise financial noise
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financial noise are we still on for tomorrow? tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. csx. how tomorrow moves. what a day. can't wait til tomorrow.
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okay. another volatile day. the dow was up 300 points. we had a report come out of new york city of a doctor who was showing symptoms of possibly of ebola. we are not sure about all that. it's unconfirmed at this point, but it did take some of the wind out of the sails of this rally, up 230 points though now on the dow. the s & p up 26, the nasdaq holding i don't to a decent gape of 1.7% at this hour. >> and american electric power reporting earnings today. and despite missing wall street estimates, stock not moving too much, it's, in fact, up almost 20% year-to-date and this's with a relatively cool summer. >> so they told us. joining us now in an exclusive interview, nicholas ache , aep's chairman, president and chief executive officer. thanks for joining us. briefly, how the quarter went for you. >> i think it was a great quarter, because we came in dollar one, which was consensus, the same time, we had the coldest summer that we've had,
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the sixth coldest in the last 30 years, the coldest july since 1979. >> they didn't crank the air conditioning. that's right. we purposely advance sold operation and maintenance expense from future years into the present year and we continue to do that. so, it was really good. it's about a good year, by the way, in terms of trading utility names that you guys have done well on the back of that. how much do you pay attention to the stock price? >> quite often, because obviously, want to see topped progress, but for our investors who depend on the dividend, who depend on earnings growth, we map the to make sure that is consistent and also what happens from quarter to quarter. have over 400 consecutive quarters of paying dividends. >> a couple of issue, one, security, the ep a earlier in the summer came out with what you consider to be very ambitious goals for clean air, greenhouse emissions productions. 60% of your power generation is coal-based. >> that's correct. >> they want to start to phase
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that out. how quickly can you do that and do you realistically think that is a solution to reducing gas house emissions? >> i think there's no question that we need to rebalance our portfolios so we can have a cleaner energy economy, but we can't forget the investments and actually the technology moving forward on every front. so we need all of our abilities in terms of resources, weather it's coal, nuclear, energy efficiency, renewables across the board to meet the energy efficiency of this country in the future. how much has the shale revolution impacted your business? and the other day, we were looking at some data just about the shift from the u.s. being an oil-based economy to one that now increasingly relies as well on natural gas. what kinds of ramifications dos that have? >> in our industry, we typically use less than a percent of oil. but most of it is coal, natural gas, nuclear as well and energy efficiency renewables and so forth. but when you look at the shell gas activity, it's been a game
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changer for our industry. we need the pipeline infrastructure to be in place, to be able to support continued investment and new generation across the country. these shell gas plays popped up out of nowhere a few years ago and brings new resources available to us we didn't have before. >> pretty amazing, security, always an issue, we think about it every day, rereminded of it again with the tragedy in canada, how safe in your view, is the national grid in this country and who should be responsible for securing it? you guys in the industry or the federal government? >> we work hand in hand with the federal government. we have a close relationship with the federal government on issues of signer security, physical security around critical infrastructure and as well, the resiliency and we do testing, evaluations done across the industry to make sure we are making progress in that regard. i'm actually feeling pretty good about the resiliency of our grid. >> have you guys experienced any breaches? >> we haven't experienced any breaches, although from a signer
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security standpoint, we get encontrolled all the time relative fishing exercises and those types of things, we have to be obviously presents in terms of our abilities to not only prevent but also to be able to react. >> ceo of of a epness, good see you. thanks for stopping by post nine. heading toward the close, we got about 20 minutes left in the trading session, coming back a little boirkt the dow up 224 points right now the s & p up 24. the nasdaq, a pretty good gape. there's thesome & p heat map today. all 500 stocks in the s & p, the vast majority of them in the green today. yes, they are. and keep it right here, because we have got earnings from some of the biggest names in tech coming after the bell, amazon, microsoft, pandora, all out after the close, tell you which numbers watch or sure to move those stocks and perhaps markets more broadly, when we come right back. an unprecedented program that partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities.
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and this being october, we got more earnings reports coming out of the top of the hour, heavy hitter, don't we, dominic chu? >> absolutely, bill and kelly. some big numbers coming up on deck, start with the biggest internet retailer of them all,, the street expecting the company to lose 74 cents a share on sales of about 20.5 billion dollars. investors would like to hear the company's long-term hardware strategy as its fire smartphone sales really spark, full, any kind of sales, also looking for news on amazon's expected performance in this all-important upcoming holiday season. amazon shares, you can see there, up a quarter% heading into earnings. microsoft expected to he were 49 cents a share on sales of $22 billion. investors here looking to see how its cloud business did, earlier this week the ceo pitched the business exclusively to cnbc. investors interested in the consumer business there, which makes two-thirds of its gross profit from sales of software to companies. microsoft, you can see, currently trading by 1 1/2% to
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the upside. again, a couple very big stocks, kelly, bill, reporting after the bell on the tech side. back to you guys. >> thank you, dom. >> that is very -- that's very -- oh, i'm sorry, i -- i am just looking at a new facebook page out there. you guys would love this. really you would. you might even like it you see what i'm doing there? >> well done. >> i have a facebook page. >> kelly evans finally come out with a facebook page there. >> i think john ford says it best, i find these things uncomfortable. if you go i will reward with you poetry and thoughts from global -- on global central bank.
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if you haven't recent challenges of this environment, i recommend do you right away. >> all kinds of fun stuff, i make an appearance or two in here as well. really, a useful tool for ways to reach out to kelly and vice versa. >> must be some sort of a tell of a facebook market or something. welcome to the 21st century. i can't believe i'm saying this to you. >> you need it. >> take do it one step at a time. >> i learned from the bess. >> we have 13 minutes left in the trading session. the vix is down today. that's because, again, on the rally days it has been setting. the actual volatility remains pretty high here in this month of october. >> when we come back, weighing in on the new report showing 401(k) investors going the expect opposite of what they should be doing during this market recent selloff. find out what mistakes you can do to avoid that and the advice he is giving anyone who wants a cushy retirement, coming up.
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eight minutes left in the trading -- ten minutes, let's call it that let's not rush
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things toward the "closing bell" much the dow up 232 points, well off the highs. we are up over 300 points at the top of the hour. the s & p up 25. the nasdaq up 75 points right now. >> joining us now is oliver from gary goldberg financial service and michael peppy from jhs capital service. michael, had markets weak an little bit, fig our out what is going won this possible ebola case in new york city. how much will investors to watch out for this in the weeks ahead? >> every once in a while, get this surge of selling and buying based on a virus and seems to dissipate as we get further near t you know, sars going back to, you know, the sars virus, the market ought 10 or 15% and rebounded right away. i think we get over this over time. >> there is an emotion that takes place. talked about earlier. is a knee-jerk reaction, the markets will we get word of that. 401(k) plans and how investors
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are doing at times -- >> see selloffs like this. zigging instead of zagging what they are all about get caught up in the emotion, caught up in the media and forget the real problem and what could be done about it. and it's getting better. it's not what it was a month ago or a couple weeks ago. >> so, oliver what should investors be doing at this juncture? >> ton buy high-quality stocks with strong balance sheet, earnings really come through this quarter there's some negative news that kept the markets down if you look at some of the companies and today's report by caterpillar to me, that's real strong sign that the underpinnings of the global economy are stronger that the data suggests. you don't get big companies like that up their estimates white house that. >> fair points, the earnings are up, headcount down by 7500 on the year. the worst fears that the market had and increasing earnings, it really as good as it seems? >> let me add in also, for every caterpillar, heard mcdonald's.
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>> the number is consistent with the last few quarters, two-thirds of the companies beatings on the earnings and revenue side, seeing pretty good growth. second quarter earnings up 10% year-over-year and third quarter the same. what that means to investors, you look at that including the low interest rate environment that's clearly going to stay here a while longer is that there's a support under the market. so, all the stuff about ebola or whether something's happening in guest or folksily, you know, the other ter she year countries in europe, short-term noise, what other studies pointed to, that caused investors to do the wrong thing, react emotionally this is the a part where you close your eyes and stay steady. fear of comp place seinecy at the same time? >> go back to last wednesday, ten-year treasury is 190, you kidding me? now back to 230 again a matter of a week i believe that you see tops and bottoms in the market based on panic, based on fear.
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i watched the volume, the a of ten-year paper going through, short covering like i haven't seen in 31 years, may have put in a top in terms of price in the treasury bond market and i happen to think that right now, going forward, equities are probably a better value, although, you know, the equipmentmakers like caterpillar, helped by buy day care backes and all that >> the last thing i was going to briefly ask, what about instead of buying the names oliver mentioned, the strong balance sheet, blue chips, you go the other way around and pick up the smaller names a little bit less globally he can posed. the ones ignored or pushed to the sidelines a little bit, is yes, sure no problem with that. good to see you. oliver, always, thank you for your views on today's market action. the market holding on, the dow still 200-plus-point gain. coming back with the closing count in a minute. think we have trick or treat visitors on the floor. >> look at that. >> as well.
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and big day for the after the bell reports, as we have mentioned. amazon, microsoft, pandora on deck. team coverage of the numbers, coming up in five or ten minutes' time, you are watching cnbc first in business worldwide. e
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earnings from 3 m and caterpill caterpillar, dow took off, up 300 points, just about 2:00 eastern time. then word coming out when this doctor who's been hospitalized in new york city with symptoms seem to suggest ebola, talk about it with bob pisani in a moment here. highlight 3 m andcality pill land contributions they made. for a time, they made up 90 points -- plus points for date. microso microsoft, amazon trading high today
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today. >> did appear to have an influence on the market but report it in a way that indicate wers confirming it. report those facts. >> understandably in some care going to be selling, the sell before the confirmation. happened two weeks ago shall the dow would have dropped much more. the response of the market perhaps a light slightly built more knew what happened, i think is the correct way to look at it, earnings terrific, what surprised me most of all, bill, i was expecting a lot of negative commentary about the european weakness in companies, hearing, a little, not a lot, how strong the u.s. is.
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>> hear that from companies coming up in a moment. stand by, earnings from microsoft, amazon and pandora. that and a lot more, a couple of ceo interviews swim. you will see you tomorrow. >> welcome to the "closing bell", i'm kelly evans. another triple-digit swing for the dow, going out a gain of 212 points. would have been all the more impressive if not the news an hour ago an ebola case reported in new york city talk about that in a second. we were up about 300 points. still going out with strong gapes, more than 1 s got s & p 500, 1% for the nasdaq, on top of a strong day yesterday. bring in today's pap toll talk about it cnbc contributor carol roth here with our own michelle
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caruso-cabrera and zahree karabell and john najarian from "fast money" and what are lost important this afternoon? >> to me, microsoft, just a question of how much money amazon loses, 'cause they are gonna lose money. whether 70 cents or 55 cents, makes a difference to traders and amazon, but i think microsoft and did they take that cloud volume away from ibm, along with perhaps some other things away from ibm and if they did, well, that's gonna make microsoft push towards that 52-week high. >> around $45 today. thank you for a little bit of a preview there, guys, as we wait for the numbers, again go back to the strong day we had. do we start with the fact we are up almost 300 pints or fact we sold off 100 on ebola, facts or fictions? >> i think ebola, every time you get one of the headlines worry if we are going to see some kind
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of pandemic, hope a doctor who had gone to treat people and came back did some kind of self-quarantine, right? assuming, giving benefit of the doubt they have been in their apartment or wherever for the last however -- >> and then seemed to develop a fever and do some more of that. we will get back to all of this in just one second here. amazon earnings, quarterly results are out and julia bore step has details. hi, julia. >> hi, kelly. amazon revenue missing estimates coming in at 20.58 billion versus expectations of 20.84 billion, earnings per share coming in at 95 cent loss. expectations were for a 74-crept loss compared to 59-crept loss in the year ago. continue to dig through these numbers here, back over to you. >> julia, thank you. wow, dr. j, a 95 cent loss here, shares look to be taking it down by about 5% after hours. >> yeah and as i said with melissa lee when we were doing the earnings squad, this is what i worried that if indeed they
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couldn't cut those losses to around 50 cents instead of 74 that the street was looking for, they were in trouble and sure enough, missing by as much as they did losing almost $1 a share, well, that means it's all -- all the more likely, i believe, that microsoft is one of the people that took even more from amazon perhaps than they took from ibm. >> wow. let's bring in a couple of analysts. from disruptive tech is with us for more on these amazon earnings. welcome, lou. and -- >> good to be here. >> and den morgan for reaction to these numbers. dan, first to you. i mean this is a pretty big mess. >> yeah it is. it's a little disappointing, you know, 95-cent loss, obviously, want to get more figures, i would like to hear how other revenue did, which is that as -- aws, which is their web service group, how they perform, but initially, obviously top line and the loss not as good as we
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could have hoped. >> that's for sure. that is for sure. lou, give us your take here. >> yeah. >> i think this is a show me the revenue story gone bad. and last november, i warned that investors were growing impatient with this and this shoes are hard one to swallow. last quarter, odds will of about $41 million and this is gonna be a tough one to justify saying we are investing in the future when the loss is that big. i mean, i agree that the key number here is are the a ws number and the other income line. that was the one last quarter that you remember sparked a selloff. it was down about 3% to 1.2 billion. if it's down again this quarter, then i think the selling's gonna accelerate. >> carol? >> it's interesting, investors obviously been giving this company a pass for like 20 years the question is is it now potentially an activist situation, get investers who have been holding out, investing in the stock coming in, saying you need to get your act together, we need to see you can actually make money as a
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company? >> guys chew on that for one second. microsoft earns out, this could be part of the story, get great to those numbers with our josh lipton. hi, josh. >> kelly, microsoft just reporting 54 cents on 23.2 billion. the street was looking for 49 cents on 22.02 billion so that is a beat there on the bottom and the top. just looking through the business segments quickly, kelly, devices consumer clocks in at 10.96 billion, better than what the street was looking for, commercial 12.28 billion that is also besting estimates. kelly, back to you. josh, thank you. so, we have a couple of big names. microsoft there up 2%. i want to go back to you, dan morgan, for reaction to this and again, compare and contrast it with what amazon just told us. yeah, looks like a good number. i think the key on this figure was obviously seeing how their cloud business was moving along with office 365 and azure and how that was taking business
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away from their commercial enterprise group. so it looks like that net number was a little bit better than expected. so, that's good figure. it looks like coming out of microsoft, obviously, earnings and revenues, from what we can tell so far, look really, really good. lou, a word here on microsoft from you? >> i'm with dan again, totally agree own the key in the cloud, the other thing they will dig into, too the gaming business. we are in a unique upgrade cycle for the consoles that's really going to persist. almost a once in a decade upgrade cycle. not a huge revenue contributor, but again, i think a growth drive terror not necessarily reflected in the pure plays in the space like turtle beach and game stop to lary extent here, microsoft. i think that's periphery story that could be significant, too. >> carl? >> for disclosure, microsoft is one of my clients they brought their sexy back. microsoft is getting sexy again and not only is their cloud service business doing a great job, they are really one of the big three.
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as somebody who walks around with my surface all the time, apple users who say what is that, does it work well it really seems like there's a renewed interest in their products and then, of course, just a bigger play around the cloud. so, to me, they have got their sexy back. >> nice timing, zack. >> i'm not quite ready to call microsoft sexy, nice aspirational thing. the other thing is, yes, we are comparing amazon and microsoft, both reporting today, understandable news segment, one, very different businesses. two, microsoft trading 300 a share if it had the gains the past five or six or ten years that amazon has had. amazon investors flip around around these things. probably not nearly as bad for amazon as it looks, maybe as good for microsoft currently looks. amazon's gonna keep spending a lobby, a guy in control. i don't care how many active
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investors show up no plan b other than jeff s bs b about ez. >> up 20%. >> more with julia on the details of the report. julia? >> give you a look at amazon's guidance, the fourth quarter, net sales 27.3 and 3037 billion, a 7% to 18% growth from the year-ago quarter, much lower than wall street expected, wall street analysts projecting a 30.9 billion in q 4 revenue, entire range coming in below the wall street projections. a note where the shortfall was, the media segment, revenues were lighter than projected. back to you. >> thank you, julia. amazon shares back below 300 after hours trading, down to the tune of 6%.
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microsoft better on the the back of its report. pandora's results hitting the tape. what does it look like? >> a bit of red. down 6% on male over half a million shares of trading volume for pandora media, shares down despite the fact that pandora reported earnings of 9 cents a share, beats the average estimate of 8 cents a share. $240 million versus $238 for the average analyst estimate. next current -- or current quarter guidance slightly above expectations, think that would be a little bit positive, some reason the shares are lower. we are seeing some signs here that both the active -- active list, the number of active listeners coming in at 76.5 million was just slightly below some analyst expectations as well as listener hours, again, 4.99 billion listener hours and came slightly below expectations for that metric. shares down 6%.
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half a million shares of trading volume, see if anything changes as they provide more details and after their conference call as well, kelly. back to you. they are moving off those lows, dom. thank you. dr. j, do you want to put a bow on this or take a bow? >> i would love to do both. pan dore rark the guidance decent, wouldn't surprise to see it bounce in the after hours shall the numbers dom did a great job breaking down were not what the street was looking for. guidance might help the stocks stable ichlz microsoft, i love the quarter, i think this is going to lift the stock to that 52-week high, which is basically just $2 above where it closed, kelly. >> is carol right about microsoft? does it have its "sexy back" or a story about the less sexy kind of services division, the cloud, et cetera, and perhaps some share it might be taking from amazon? >> as carol said, i will let her live with the sexy back comment,
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but which it may be, certainly done a great job with the company, but when we were looking at it earlier saying last year was the 13 pe, now a 17 pe, and part of the reason for that is excitement about azure with the cloud and so for the, what microsoft's doing in gaming, as those two analysts said, a lot to be happy and satisfied the direction microsoft is going. >> go back to amazon here in the closing moments, lou, if i could get your take. sure. >> what happens now? what are people gonna -- has the whole narrative about amazon changed as a result of this quarter? >> yeah. i think the narrative changes significantly, the guidance below the trend line, guiding and delivering 20% top line growth for at least five quarters and now gonna guide below that. that has about the story, grow the top line aggressively, cost us a a lot of money, don't worry, we will turn on the profit spigot at some point. now that is starting to crumble.
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i think got to go back to the key, what's a ws doing? that's falling apart, too, declining at a faster rate than 39% decline last quarter, yeah, i think it really gets a rocky road. got to look for some at a lower level here. the valuation -- >> amazon web services referring to this there. just take a quick break here, everybody stick around, if you will, come back and talk more about this.put it in context this huge market data we have had as well and if this rally can be sustained tomorrow or will this yo-yo market continue? we will be right back. and if this rally can be
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welcome back. we begin with dominic chu and a quick market flash. dom? >> we are watching shares of pfizer up about 1.5% in the after hours much the drug making giant authorized a new $11 billion stock buy back program. this adds on to the remaining $1.3 billion it has left under the company's current stock buy back program, shares up by 1.5% in trading, so stock buy backs, this one is a very large one, $11 billion for pfizer, kelly. back over to you guys. >> human. 11 billion, panel? >> add to this whole criticism about what companies are doing with all this cash, reinvesting
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in the company, are they hiring people or are they buying back stock and over and over again, see them buying back stock, great for the shareholder, reduces the count. >> from they are buying it an attractive price, where this whole narrative has gone arrive. do you the stock buy back do it at a low price to signal is undervalued, not that you have nothing left to do with your cash on hand. >> pharma names. >> any investment in the market is a signal you think stocks are relative underviewed relative to what you think would you gain from them. markets are going up. health care companies have somewhat more justification, pfizer, of stock buy backs. they already have too many people, not going to hire people. >> people investing in r&d. >> the whole dispute with allergan and valiant are they throwing so much money at research over the long run doesn't return anything to them, enough to them, right? >> yeah. but again, i think in this case, the criticism is valid and companies are punting. they don't know what it is they are supposed to be doing with
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money and they have got a lot of cash, but with a pfizer, they spend a lot of money on r & d. the problem is they are salesmen, spend twice as much on r&d, wouldn't be able to cover the problems of their sales force, right? the companies don't have a long-term strat jury means i wouldn't buy those shares even though they are. >> dom has more on this one now. dom? >> not so much more but just color because to put it in perspective, pfizer shares are currently trading call it about $29 a share. if you take 11 billion divided by 29 per share, the quick and dirty math, talking over 379 million shares of stock that they are going to be buying back over the course of this program. that's pretty decent chunk, guys. >> somebody made the comment the other day regarding buying, effectively a quay yet,
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management taking the company private in a private way, shrink the float so much, buying back so much stock, going back to philosophically is this a good idea or not where do you stand on this? >> i think if you don't have a growth strategy for your company that is viable and big companies that are at the limit of their strategic vision, big pharma clearly being one. ceos saying this isn't working. in that case, yes, viacom a different story. a sumner rmer redstone. >> committed to that cash flow forever. [ overlapping speakers ] >> analysts pressuring companies -- [ overlapping speakers ] >> dividend does less to the shareholders. buying 10% of your float could raise your stock price by 10%. you're not gonna get a 10% special dividend. like i would rather, if you were a shareholder of those companies. >> more value.
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i don't want companies using capital to go in the market and buy stock when they are at all-time highs. >> john najarian, before we let you go thoughts on buy backs, where do you stand on the pfizer one? >> pfizer's been buying back multibillion dollars worth of their stock and year-to-date, down 6% or so coming into today's announcement, so, to zach's point, you know, folksily, it could be a good thing, but when you've got 6 billion shares, like pfizer has out there, you cited $180 billion company, $11 billion doesn't move the needle very far. a drop in the bucket. you would certainly hope there were better thing these could be investing in rather than on a share by back, it sounds big, not really that big for $180 billion company. >> buy pandora. >> yeah. let's hope not. >> all the synergy there. amazing. >> suspect the first buy back program, we should mention, thanks to rich peterson, the
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info, doing buy backs a xifl 10 billion, a couple years now, 18 billion back in '05. add that all up, dr. j probably does have a big impact. >> put a floor in for sure. whenever there's a stock buy back in place, kell, we look at it as share shrinker. because that is a 6 billion -- 6 billion shares outstanding in this case, it's not shrinking all that much to take 370 million shares off the market there. but nonetheless, it should put a floor in as i say, they were buying back billions of dollars worth this year around the stock is like this, down 6 1/2%. and the shares on that news rallying about 1%, reflecting perhaps some of that cynicism now. dr. j, thank you very much for your thoughts on and earns from amazon and microsoft still digesting. on "fast money" at five, talk to the chipmaker just reported an
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outstanding third quarter, president and ceo of nxp sell, rick clerm, don't want to miss it. rodney martin will explain why they could be putting their retirement at risk and an 8% increase in ad spending helping interpublic's thirds quarter results nearly double. what do the rules say about the health of the u.s. economy and where people are spending their money in the advertising world? ceo michael roth is here exclusively when we come right back.
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so right now if you get the 15 gig plan, we'll double the data and make it 30 gigs for the same price. 30 gigs? wow - that's a lot. you don't have to do that for me. oh, that's ok... (interrupting) seriously, i wouldn't want you to get in trouble... it's the same plan for everyone. families...businesses...whoever. riiiiight. (yelling) no celebrity treatment here! (yelling) there really isn't any celebrity treatment. just a normal guy, getting a great deal. we're just saying it loudly for some reason. now get 30 gigs of data to share with family or your business. for a limited time, starting at $160 dollars a month. to build something smarter. ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪
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as we have been reporting, a doctor in new york city who treated ebola patients in west africa in bellevue hospital in man hat within ebola-like symptoms that news was a big factor in the market, shaving off 100 points of its gapes toward the close when word got out the doctor was rushed to the hospital by an ems team in hazmat suits. joined on the phone by dr. scott gottlieb, former fda commissioner. doctor, thank you for calling you n i guess the questions at this point come down to how safe was the doctor upon his return from west africa? how much interaction might he have had with the public? we understand from what we can read right now he had self-quarantined. was he taking enough precautions? >> self-quarantined after he developed the symptoms this morning based on reports, certainly highly suspicious based on the little we new york not just the type of symptoms he
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is presumed to present with today, the timing of the onset of the symptoms with last exposure. the risk should be low because from what we know now the symptoms began this morning, he self-car ran teamed this morning, presumably, didn't come in contact with additional people after that. he shouldn't have been that contagious prior to the onset of symptoms, based on what we know. also dealing with a health care worker so you have to presume, these are all suppositions at this point, that he was taking proper precautions, he was being aware of his own health status anticipated called as soon as he came down with symptoms. i think the reason why people are jumping to conclusions about what might be reckless behave wror is because there was a feeling the health care workers in dallas treating that ebola patient passed away with getting on cruises, doing activities among the general public that they felt perhaps put other people in danger. yeahthy thank you's a little bit of a different situation. i think that a there's a lot we don't know about the behavior of this virus in a modern urban environment. what we learned in dallas is
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health care workers in our critical care setting are probably at higher risk than would be if they were treating patients in west africa and that's precisely because our critical care medicine here is much more invasive. we do many more procedures. so i think those nurses didn't fully appreciate how much risk they were at and how much risk of he shall poesh sure there was. not sure when this happens again, there will be additional cases, sent there's going to be more precautions taken to protect health care workers and monitor them after this he take care of the patients. >> even bellevue hospital in manhattan where this doctor is one of eight hospitals that are now set up with specialized facilities in the wake of what happened in texas to deal with treating ebola, which would you hope protect the health care staff there from allowing this infect them and perhaps others, but we should tell people doctor, generally, we don't know if he is ebola yet, right, another 12 hours before we get the test results and can be determined whether this is the case? >> absolutely. i mean, this could be a lot of other things including, you
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know, more mundane illness people are suspicious because of where he was, what he was doing, obviously, exposing himself to these risks and the timing of the onset. you really have to admire the physicians who go over there to provide this care. they know the risks they are take and they though the potential outcome. absolutely. we hope they can as mentioned, upon return, are able to keep from infecting others if they themselves are infected as a result. thank you, dr. scott gottlieb on that news today. moving on, boasting a roast other of clients, interpublic group is one of giants in advertising and market. yesterday the company announced 1.8 billion in revenue in the third quarter earnings but a dog eat dogs business and makes "mad men" looks like a kiddie party. with us now in an exclusive interview to discuss his company's performance is ceo michael roth and our own julia bore citizen. so, welcome to you both. simply because we brought in unileifer as your client, they
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had a disappointing client, gets to companies around the world traditionally big advertisers, are you seeing any pull back? >> >> we reported positive i werings, we haven't seen a big pull back, when sales are done, what you should go is, spend more on advertising. it actually works. >> what happeneded ed tto your and what happened to digital advertising? >> digital provided growth to us.
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>> forecast, with the holiday shopping season what is your outlook here and abroad? >> significant amount of earnings and revenue in the fourth quarter. what i said on the call is we were comfortable for the full year we had said 3 to 4% organic growth and 100 basis points improvement in our margins. what i have said on the call, believe we will exceed the 4% organic growth for the full year, which means we will obviously continue some growth in the fourth quarter. and we believe we can at least deliver the 100 basis points or better for the full year. don't comment on specific forecast. >> says you are doing a great job.
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mentioned the stock buy back. philosophically, how do you think about how to put your cash or capital to work? >> if we don't have internal uses of our cash in terms of growing business and doing transactions, the cash belongs to our shareholders. since 2011, we have returned a billion eight to our share holders in the form of buy backs and dividends, i nomar gee big fan of that. i did hear his comes this morning and want to comment the comment we were flat in terms of outstanding shares. down 4%, because of our accounting last year, converts taken into account. the fact we retired that, down 4%. down 21%. >> is that a good thing? >> yes. >> ultimately, sounds like you are talking about a triumph? >> not triumph, returning cash to our shareholders, exactly the
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point. you have share appreciation, dividends and share buy backs and frankly, doing all three. >> julia? >> a question about elliot management bought 7% of the company this summer to pressure to you sell. what is the latest? have you heard from them since earnings? >> hope elliott as well as other investors are pleased with results and share performance since we released earning, with every investors, we constantly meet with our investors on a regular base circumstance certainly, elliott indicated the possibility of a potential buyer of our company. as i stated, we have an obligation to enhance shareholder value and if there he is a answer a appropriate transaction out there that will enhance shareholder value, we will entertain t meantime, focus is on expanding margins and delivering shareholder value by share appreciation and buy backs and dividends. >> how is your relationship with
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marissa meyer? >> fine. just an unusual circumstance in cannes. >> i had an interview with a were roar the next morning and she had the store rained a lot was made of it. a great relationship with yahoo!. >> thank you for being here. appreciate it congratulations on the quarter as well. julia boorstin, our thanks. and send it to dominic chu. >> here is what we got for you. check out what's happening with deckers outdoor, lower after it gave lower third quarter guidance. the company did report second quarter tlaults beat wall street forecasts, shares down by 1.5% in trading. june per networks lower on weak guidance. the company reported quarterly earnings that beat street estimates by just a penny. trading, you can see there, down
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by 4%. different story for kla ten core, a special dividend of 16.50 a share, 3.6 million buy back. also trading, up by 15% in trading, up to big after hours mover, which is lower sharply, down by 11% after their quarterly results missed some expectation and their forecast for holiday season seams came in as well. big cap megacap tech stocks to watch in the after market trade. back to you guys. >> thank you for now. that market giving investors sickness lately, amazon holders here, how can you protect your nest egg in this environment? rodney martin is here next and has a big focus on retirement savings. takeout food ordering company, grub hub, seeing sales skyrocket 51% the third quarter. what is driving that growth?
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ceo, matt maloney, joins us coming up on the "closing bell." big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. (shouting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do, and you gotta do it fast. before the competition does. it's tough out here; you better be on the right cloud. today there's a new way to work. and it's made with ibm.
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(receptionist) gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics.
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ing u.s. is positioning itself as america's retirement company. better to get a take on this than voy ya's ceo. and our panel fresh off ringing the "closing bell." what is the occasion? >> we loufrmed our voy ya born to save program earlier this week, national save for retirement week. we had to of our employees babies up there, for every baby born in america on monday, we are prepared to contribute $500 to a mutual fund to really help book end the importance of saving over a long period of time. when you consider 10,000 babies are born every day in america and 10,000 people turn age 65 every day in america and will for the next 20 years, it underlines on the tight and need. >> what are you doing to make sure these kids don't sell out of the mark wet that 500 bucks, we have this kind of volatility?
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>> you want the lifetime value of a customer and to start day one is so, so clever. i want to talk about the target customers. let talk about millennials for a second, having a difficult timesaving what do you do to change their mentality to get them refocus oed on themselves t future? >> employers, small, midor large, many of them have had fine programs in place but they needed new tools to engage exactly that audience. we have had to put tools in place digital and mobile and really allow people to play on that mobile app to see where
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they are today and we really think about retirement as an income in retirement, so not just a number. people have a hard time relating to a number but they know how much they are making today and if they think about replace 70 or 80% of that income and this slider on the app really enable them to engage in a way they otherwise communicate with their other peers. >> the issue of rebalancing toward fixed income away from equities, invest now, we did work with millennials as well, our equity scared and either cash or bond if they are going to do anything with it happy, first of all, how do you prevent people from hon earning their allocation decision, equities runs, you got to sell them to buy bonds and why shouldn't they do that if that was their model retirement that they got from exactly the same calculator? >> regardless of the calculator one uses, people think of this as a long-term piece, not trading in and out on a we can or a month or frankly even a
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quarter generally and that's good thing. and certainly, all the advice and tools that we put in place and many others do similarly, reenforce that theme. >> can i ask you a question, we did a series on cnbc about the baby boomers, the wealthiest retiring generation in history. i read stats that said nobody saved anything for retirement and we will have to pay for these baby boomers. what is it? >> i think if you think about all of the alternatives people have, it's why part of our thesis when we went public seven quarters ago was built around something we call retirement readiness, an awareness about the need to both accumulate, protect and then ultimately distribute that money. what we are finding is that through tools like my orange money that we have put in play, it really is naming people to focus on a way relatable to them and not finding people unable to do it, not aware of the tools to do it and we need to do more and we have with both our personal financial dashboard and my
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orange money to enable people to relate and look at that tool and save just a little bit more on a monthly basis and maybe take advantage of the match their employer has. >> a lot of work sounds like needs to be done. i don't know where all this wealth is, but rodney martin, thank you for being here and trying to maybe help next generation make better decision, ceo of voya this afternoon. grub hub is delivering the goods to investors, the takeout ordering company beating sometimes. what is their recipe for success? the ceo is here when we come back. new york state is jump-starting business with startup-ny. an unprecedented program that partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at
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welcomeble back. online food delivery company, grubhub, beat the streets significantly, saw sales jump 50% year on year. are americans cooking less and is that behind grubhub's growth. here to answer in the exclusive, ceo matt moloney, with the papal. welcome. thanks for being here. >> thank you, kelly. >> you guys are growing quickly. but what is it that's driving this kind of year on year increase? >> well, the team's really killing it and a lot of the investments we put out at the beginning of the year, both in mark technology are really starting to pay off. think about this. the domestic takeout market is $70 billion annually. and so, even with these, aggressive growth numbers, grubhub's only gonna process not only $2 billion this year. so the market is massive and there's a lot of room to grow. and so when you really see our numbers taking off, it's just
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the early adopters seeing the opportunity of online orderin and really flocking to our platform. >> matt, congratulations from a fellow chicagoan, carol roth here, i love to see a great chicago success story. my question is around customer loyalty and really creating a mode. how many of your customers do you think are loyal to grubhub and some of your other brands, like seems and what are you doing to ensure that they come back to grubhub ordering one day maybe through uber? >> sure. well, what we see is once you've order once or twice, it's ral way of life and our diners order very, very consistently over years. and really, i think what that is the fundamental product that we have built. i mean, we bring over 30,000 restaurants in our network, we are providing tools that increase the control and the traps par repcy for diners and fundamentally, we make it free and easy to order. and people just like that and once you get that, there's really no reason to go anywhere
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else. >> matt, you guys are growing quickly, most of the confirmation on this show and others lately has been on the big established names that have excess capital, returning it to shareholders, for you gays, how important is it to raise capital? how much investment do you foresee and are you going to be tapping public markets as you continue to do so? >> well, we just had a second there and we raised near lids 50 million. so we have quite the war chest in our -- on our balance sheet, but we continually are investing, specifically in product and marketing. we know that product is the fundamental for growth and really continuing to define what online ordering is. and so as you have seen in our financials, really investing in product have a new cto, pushing, pushing, pushing and then really doing everything we can to communicate that over national television, as a matter of fact to make sure that understand that, hey, grubhub's in your market, and we have your favorite restaurants. advertising on national television. >> i was surprised with that. how do you get most of your customers? is it through the phone? is it through desktop
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advertising or now tv? >> through the phone? what are you talking about? we are grubhub it is online ordering. >> the smartphone. >> no we had -- >> duh. >> 50% increase in year ever year diners and really, that's coming from the markets where people are traditionally ordering over the telephone and then on paper menu. they see our tell advertising, they recognize there's a better way, their favorite restaurants -- >> to me, the phone is the smartphone, so i'm thinking somebody's using an app or somehow they have received an advertisement from you. >> you would be shocked that 95% of the orders, 95% of that 70 billion in spend is over a telephone, like a classic rotary and then the paper menu. >> a rotary? love it! love it! >> a rotary! >> last question -- a quick question about where, obviously, these are service well suited to dense, urban areas, makes it easier for you. what about the suburban strategy? does that work? is that a growth area? really going to focus on cities and younger demo graphic? >> absolutely it's a growth
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area, part of the reason we are doing national television. obviously, founded in major metro areas, chicago and new york city, where you have the population density and the restaurant network, but now we are seeing the value proposition we bring with easier, more control, easier ordering, more control, more traps paren circumstance that resonates across the country and we are seeing a higher pest damage growth rate in our secondary, tertiary and suburban markets than we are in the metro markets right now. matt maloney, thank you for being here this afternoon, the ceo of grubhub, growing like a weed. word travels fast when it comes to ebola. no sooner did it get out today about a possible case in new york city involving a doctor who recently returned from west africa that it became one of the most read stories on we will have more on the latest ebola news when we come right back.
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welcome back. ebola back in the news in a big way this afternoon. people are reading on now with alan. >> hey, kelly. that's the number one story right now. the news broke during your show that in new york city, they're testing a doctor for ebola-like symptoms, and people have just been jumping all over that story. i want to channel my inner managing editor and point out there's plenty of these kind of cases before where it's turned out to be negative, but the fact
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that he recently visited west africa and was treating patients there seems to have people's attention. another story that's really getting readers' attention right now is amazon. the earnings big disappointment. people are going into that story hot and heavy. in the last hour, that's been the number one stock looked up on the website. there you go. >> thank you. i just want to bring in the panel here. amazon is down 11%. >> let's see if it holds, right? it gets over this every single time. >> i think we're getting to the point when investors are finally saying does this model make sense? i don't believe that that's the case. i don't think they can ever make enough money to justify the kind of valuation that they have now. >> here's the interesting thing, and it goes back to the very first thing amazon ever said as a public company to the investment thesis, the likes of bill miller and others have. it's about cash flow, and no surprise the first line of the press release is about cash flow again, making the point it is up 15% on the trailing 12-month
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basis. they had over a billion dollars compared with less than 400 million at this time last year. ultimately, does that matter? >> carol's point is right, which is amazon is going to be and is a transformational company, whether you hate it or love it. and nothing about this quarter changes that. it's more like, look, we have a limited number of dollars that we have to invest in x. if x is like a ten-year story with no possibility that any shareholder is going to see dividends, they're certainly not doing share buybacks and all the money is going to be plowed into future growth. at some point, you're going to sit back and go i'll use it, but i won't buy it as a stock. that's the only question for amazon. when you have all these other companies that are actually generating revenue. >> just to raise the question, there are others who say that what they're doing is actually more transformative than most people realize because they're using the cash that's generated in that short-term period, that it doesn't even make it relevant. >> they're going to say, you know what? in five years when that company is actually generating earnings, i'll buy the stock at $500
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because i'm not going to sit around the next five years. >> all i'm saying is if the point is not so much that they're generating earnings, but that they're generating cash and using that cash in a way that the internet allows them to do so, that itself -- and i know the shares are down 11%. >> i've owned amazon. i still own a little bit of amazon but i don't own it with the enthusiasm of this is going to mean anything now. i mean, this is really -- it is the definition of a long-term investment. ten years from now do i agree that your thesis may hold out? >> it's a valuation. >> what is amazon ten years from now? this guy thinks the way the google guys think, right? >> is that a good thing, though? >> i think ten years from now, some of the acquisitions that they've made, things like twitch, will probably be spun out and not part of amazon anymore. >> here's the thing. companies that don't change, years go buy and we criticize them, why didn't you do more things. >> this is a company early in its life cycle.
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i think the time to criticize them for that is later on once they've matured. >> and my point is that there are companies that don't ever try anything new, right? >> is it too early for them to be trying so many new things? just eventually have to have -- you know, take half of what they're doing, focus on it, make some earnings. >> when we come back, our final word on amazon here. more on earnings and what to watch for tomorrow. we'll be right back. ice. teacher of the un-teachable. you lower handicaps... and raise hopes. and from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (pro) nice drive. (vo) well played, business pro. well played. go national. go like a pro. shyou see this right? it's 80% confidence and 64% knee brace. that's more...
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welcome back. it's been a huge week for earnings. also had some beats from the likes of caterpillar. what's most important that we've learned about through earnings season so far? >> it's been a strong earnings season with pretty decent revenue, just like second quarter was. and better than people thought. and there is actually real revenue growth, not just financial engineering. the interesting thing about ibm is pure financial engineering is clearly no longer satisfying to investors as a reason to be part of the story. you need to have that dynamism. but we're seeing a lot of companies with that. >> and microsoft did manage to avoid being bucketed in with the old type names in an important way. >> i think that that's the case. another thing that's standing out to me is the guidance. we're not hearing the bad
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guidance that i was very concerned about, which is a good thing in the short term. i wonder if that will hurt us in the long term. >> even though that's the case for some of the names we've heard there and other sectors, we also had juniper. we had even amazon getting hit. just a couple other tech names that have had some weaker guidance. maybe it's company-specific microchip. >> i think it's more of a company specific story. i think from an overall narrative, i was very concerned that we would start hearing that guidance issue from every company that was out there, and i think it's been very specific, name specific to their own stories and their own companies, so to me, again, i think that that's good perhaps in the short term, but it does worry me for et issing up that higher bar that has to be lowered as we hit 2015. >> mcc, what are you watching here? >> waiting for the brazilian election on sunday. if this guy nevez pulls it out, if you watch the brazilian
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market this week, it's getting hammered because it looks like dilma rousseff could win. >> is that the one that lindsay lohan is backing? >> i don't know. >> have to choose between that and the european stress test. what a sunday coming up. thank you, everybody. "fast money" begins right now. melissa lee, what's going on? >> all right, kelly, we've got an exclusive with the ceo of nxpi. he will join us in a few minutes. >> great stuff. over to you guys. >> "fast money" starts right now. live from the nasdaq market in new york city's times square. your traders are tam, karen, and guy. lots of news at this hour. amazon's conference call starting right now. shares are down about 10% after the company missed on revenue and missed on earnings as well. we've got bob monitoring the call. he'll bring us the latest coming up. and a win for old tech. microsoft reporting earnings moments ago. those shares are soaring. 4% in the afterhours session. plus big rally today


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